6.01 Explain the concept of sponsorship.

Sponsor A business, person or organization that finances a sports or entertainment entity.

Sponsee The entity (event, sport, athlete, entertainer, or venue) that receives money for product from the sponsor.

Sponsorship The financing of a sports or entertainment entity by a business in return for recognition affiliation.

Sponsorship (continued) Involves money, products or services Marketing exchange With any sport or entertainment entity In-kind sponsorship Forms: –Teams –Governing bodies –Athletes –Facilities –Event –Sport –Leagues

Sponsorship (continued) Factors used to determine what to sponsor: –Increase in product sales –Compatibility and image –Tie-in –Potential media coverage –Exclusivity of competitors Types or levels –Title sponsorship –Presenting sponsorship

Examples of Factors Tie-ins: –Powerade is considering being the presenting sponsor of the local YMCA 5K road race. –One of the determining factors is exclusivity of beverage sales at the local YMCA. Potential Media Coverage & Recognition Available –Availability of signage around the track at a national meet or around the racetrack. Exclusivity of competitors –Exclusivity is when the company is guaranteed to be the only sponsor in a particular category that is linked with the event or venue. –Divisions of the sponsoring company may also be ensured exclusivity. –Exclusive sponsors are usually entitled to use logos or slogans associated with the event. –It is better for the sponsor to have a broad exclusivity category since more competitors could be eliminated from becoming sponsors.

History & Growth of Sponsorship Roman times – gladiators and chariot drivers would wear colors representing specific merchants 17 th & 18 th centuries – pubs in England sponsored horse races Mid 1800s – local companies sponsored Harvard & Yale rowing teams

History & Growth of Sponsorship (Continued) MLB – first major league sport sponsored by corporations 1970s – change in sponsorship because of ban of tobacco and alcohol ads (Ex: RJ Reynolds) 1984 – Corporate sponsors of the LA Olympics (limit: 30 sponsors)

Increase in sponsorship Athletes as walking advertisements Ease of targeting a specific market Increase advertising costs Lifestyle sports Live programming of sporting events New media Nontraditional sporting activities Overcrowding of advertising Taxpayers not willing to increase the amount paid for sports

Event Triangle Audience: the potential market Entity: needs the sponsor for financial assistance Sponsors: need the entity for public recognition Sponsorship is an ongoing partnership.

Why companies sponsor entities: Help businesses reach their target market Increase sales Increase market share Inform potential customers about their product Enhance overall goals and objectives Give sponsors the right partner A way to introduce new products Increase public awareness or perception Prevent direct competition through exclusivity Repositioning Psychographics Networking opportunities Exposure and visibility Promote goodwill

Why entities utilize sponsors Financial support –Represented by actual cash sponsorship dollars In-kind support –Occurs when a company does not finance an event with actual cash sponsorships –A company will provide products, equipment, services in return for their affiliation with the sports or entertainment entity –Also called barter sponsorship

How the audience benefits from sponsorships Lower ticket prices Exposure to new products Free samples and give-aways Non-evasive advertising

Assignment Using a real life sports or entertainment example, illustrate your own event triangle. You may use magazines or hand draw your pictures. You must also explain why each part goes together.